The giant £1.5bn megaproject that could transform underrated South American country

The rolling peaks of the , long a symbol of Chile’s natural grandeur, are now home to one of the most ambitious renewable energy projects on the planet: the Andes Renovables megaproject.

Touted as a transformative step in the nation’s pursuit of carbon neutrality by 2050, the initiative is capturing global attention—not only for its scale but for the complexities it introduces to the energy landscape of Chile and South America.

Spearheaded by a consortium of public and private stakeholders, aims to transform into a renewable energy powerhouse.

Comprising a network of wind farms, solar installations, and energy storage facilities, the project has a combined capacity of over 1.5 GW, enough to power more than 1.7 million homes annually.

Strategically spread across Chile’s diverse terrain—from the sun-drenched to wind-rich coastal regions—the project capitalizes on the country’s natural bounty.

This undertaking comes as Chile doubles down on its renewable energy commitments, with the nation already deriving over 25% of its electricity from renewables. Andes Renovables could elevate that figure to unprecedented levels, putting Chile on the map as a global leader in clean energy.

Economically, the megaproject holds vast potential. Some $1.8billion (£1.5billion) is being pumped into the construction phase, which has in turn has created thousands of jobs, revitalising communities in remote regions often overlooked by traditional development initiatives. Proponents say that post-construction, these areas stand to benefit from improved infrastructure and long-term maintenance jobs tied to the .

Beyond Chile’s borders, Andes Renovables may redefine energy geopolitics in South America as a whole. By exporting surplus clean energy to neighbouring countries, Chile could become a key player in stabilising regional grids and reducing dependence on fossil fuels.

However, the road to a greener future is not without bumps, with critics arguing that the megaproject, while well-intentioned, poses significant environmental and social challenges. Some wind farms, for instance, have been installed near critical habitats, prompting concerns about the impact on biodiversity, particularly migratory bird populations. Solar farms in the Atacama Desert—one of the most fragile ecosystems in the world—have faced scrutiny over land use and potential water consumption during construction.

Social tensions have also emerged, with indigenous groups voicing opposition to the encroachment of renewable projects on ancestral lands. While developers claim to have engaged in consultation processes, some communities feel their voices have been marginalized in the rush to meet global climate goals.

Economic disparities could further complicate the narrative. While large-scale investors and energy companies stand to gain significantly, local communities often see only a fraction of the financial benefits, and so critics warn that without equitable distribution of resources and profits, the project risks perpetuating a cycle of inequality under the guise of sustainability.

Though the Andes Renovables megaproject represents a , at the same time, it highlights the complexities of green transitions in the real world.

For Chile and the surrounding region, the stakes are high. If successful, the megaproject could catalyse a new era of prosperity and environmental stewardship. Yet, if certain precautions aren’t taken, it could deepen existing divides and undercut the very ideals it seeks to uphold.